(MENAFNEditorial) FEATURE CONTENT (940 words)
By John Shadwick, President/Founder,
Support Associates, Inc., Orange County, CA
Management experts across the globe have been debunking the so-called myths of outsourcing key business functions for years. In the world of customer support and 'call centers especially, where company reputations are put on the line daily, it is important to pay attention to why these myths are just that myths.
What are they?
Generally speaking, outsourcing aka freelancing, subcontracting, virtual assistants is a direct result of companies, large, medium, small and startup, growing so fast that they can't afford or are ill-equipped -- to staff and fund much-needed functions in-house. The 'myths emerged from bad experiences by mostly American firms that have tried and failed at properly implementing an outsourcing plan. Here's my Top 10 List:
Myth 1 Companies are leery about giving up control to outside firms.
NOT TRUE Based on industry research and experience, outsourcing actually gives you more control as new technologies improve the flow of information and communication.
Myth 2 - The best time to outsource is when sales increase and you have too many calls
NOT TRUE - Certainly a time to outsource is when sales are increasing in a clearly growing market. However, the best time to outsource is in an uncertain market when sales are volatile because unpredictable sales make staff forecasts difficult -- if not impossible. You should only be paying for actual contact time, so you always have the right amount of support -- never too much and never too little for big cost-savings.
Myth 3 - Outsourcing means offshoring
NOT TRUE In the last decade, world economies have improved dramatically. This fact has changed the dynamics of outsourcing which traditionally was a way for American companies to save money by taking advantage of lower offshore labor costs. Today, as overseas labor costs increase, more domestic firms are finding home-based outsourcing firms more appealing, not only for cost-saving reasons, but for convenience, cultural understanding and yes, even patriotism.
Myth 4 - Only big companies outsource
NOT TRUE Statistics show that outsourcing actually adds value to smaller firms by cutting overall costs and making them more efficient and effective. And for start-ups, outsourcing is especially valuable. Not only do you save money because you only pay for the support you actually need, but the presence of professional outsourced support enhances the image of your company and its products among your customers, distribution channels and the media.
Myth 5 Outsourcing will result in losing touch with customers
NOT TRUE In fact, your customer interaction will increase and result in added trust between you and the people who are buying your products and/or services. In the ideal scenario, your outsourcing company managers serve as liaisons between you and the customer. They are required to spend a large percentage of their time answering calls on a daily basis, and they know exactly what is happening with your customers and products because they are involved with them and are responsible for meeting your immediate needs.
Myth 6 Outsourcing means giving up quality support
NOT TRUE Professional outsourcing firms use only highly trained and certified agents to answer your clients' customer calls and emails. In my firm, for instance, our agents must pass proprietary and rigorous customer service training and Quality Assurance Program reviews to ensure our high standards are met and exceeded. In addition, a comprehensive training program not only includes gaining a thorough knowledge of your products, but provides education about your company culture to ensure that all of your outsourcing strategies and goals are achieved.
Myth 7 - Create a product and they will buy
NOT TRUE - If only it were this simple. While examples of why this myth is not true are not easy to find - we seldom hear of failures - the Edsel and the DeLorean certainly come to mind. The product is only the first step. Marketing, sales, and service also have to be in place before "they" will buy. Marketing to make sure that the product doesn't remain a secret, sales to present it to customers, and service to assure that product purchased remains sold.
Myth 8 Answering the phone 24/7 increases calls
NOT TRUE It is a myth that customers just call support because it is convenient. No one likes to call support. Most customers compare the experience to taking a driving test they fear being judged. The reality is that 24/7 support enhances your company's image and reduces returns.
Myth 9 - Outsourcing means I have to outsource all of my support
NOT TRUE - You can outsource support for individual products or projects, outsource only part of the day or week, SAI will help you with any part of or all of your support needs.
Myth 10 - In a commodity market, price is the only basis of competition
NOT TRUE - If price is the only basis of competition, then the small companies will be forced out and the big companies will become stagnant. In fact, most studies recommend that differentiation is most important in a commodity market. The best way to differentiate your products is customer service. The result is enhanced company image and reputation along with reliable products which lead to sales success.
About the Author
John Shadwick, with experience that parallels the entire modern technological and personal computer supportr era, is the president and founder of Support Associates, Inc., a Southern California-based technical support outsourcing company. It assists small and medium companies by providing their customers with excellent but affordable 24/7, 365 days a year customer support for computers, consumer electronic products and anything that runs on, communicates with or is attached to them.
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